Decision on diesel price hike after Sonia returns

A decision on diesel price hike, proposed by the UPA government, is likely to be taken after consultation with Congress president Sonia Gandhi after she returns from a medical check-up abroad on September 10.

“The diesel price hike, a sensitive issue unlike the rise in petrol price, will have to be decided at the UPA-level and hence the wait for Gandhi, who is the UPA chairperson,” sources said.

Both Petroleum and the Finance ministries are pitching for a hike in price of diesel and petrol. “Petrol price hike may happen only next week. We are not sure about diesel price hike. There is also a possibility that hike of both petrol and diesel prices may happen together,” they added.

Once a decision is taken at the UPA-level, if a hike in diesel price has to be effected, it will be decided at a meeting of the Cabinet Committee of Political Affairs, since diesel is not decontrolled. The oil marketing companies will announce the petrol price hike since petrol is decontrolled.  These issues were discussed at a meeting chaired by Petroleum Minister S Jaipal Reddy on Thursday.